The shareholders of Vitafoam Nigeria Plc at the company’s 57th Annual General Meeting (AGM) held on Thursday March 7, 2019 in Lagos, approved for the board of directors to pay the recommended 25kobo dividend which amounted to N260.51million.
Also, the shareholders approved that the Board should issue bonus of one (1) new share for every five (5) units already held.
Both the dividend payout and bonus shares were meant to reward Vitafoam shareholders for their unwavering support and commitment to the cause of the company.
Vitafoam Nigeria Plc is Nigeria’s leading manufacturer of flexible, reconstituted and rigid foam products. It has the largest foam manufacturing and distribution network which facilitates just in time of finished products throughout West Africa sub region.
At the annual general meeting, the shareholders received and adopted the report of the directors, the audited financial statements for the year ended September 30, 2018 together with the report of the auditor and audit committee thereon.
Vitafoam Nigeria Plc reported turnover increase from N15.92billion in 2017 to N17.61billion in 2018. Profit before tax grow from N290.28million in 2017 to N619.23million in the 2018 financial year, while profit after tax also increased to N486.10million from N190.54million in 2017.
“The boost in both turnover and profitability reflected the robustness and fundamental strength of our business”, Bamidele Makanjuola, chairman, Vitafoam Nigeria Plc told shareholders at the meeting.
According to him, following the economic downturn of recent years, the company took the strategic decision to re-engineer the entire business with special focus on products quality and innovation, market differentiation, customer service and consumer education.
“These efforts underscored our long-term priorities of growing revenue, controlling operating costs, and driving higher gross margins. We made great strides in cost containment and sustained positive trends in gross margins,” Makanjuola added.
As part of the special business at the annual general meeting, the shareholders passed among other special resolutions, that the sum of N104.2million out of the existing revenue account be capitalised and distributed among the shareholders of the company whose names appear on the register of members at the close of business on Friday February 15, 2019 on the condition that the same be not paid in cash but be applied in paying in full for 208,414,000 new ordinary shares of 50kobo each to be allotted and credited as fully paid for an among such members in the proposition of one (1) new ordinary share for every five (5) existing ordinary shares held by them at that date.
The shares so distributed shall rank equally with the existing ordinary shares in all respects except that they shall not rank for the dividend recommended for the year ended September 30, 2018 and the directors shall give effect to this resolution on receipt of necessary approvals from the authorities.
